- Shares had been suspended from trading to allow for the conclusion of a Sh83 billion buyout deal by Dubai-based Delta International FZE.
The Nairobi Securities Exchange #ticker:NSE has lifted the suspension of trading of shares of former shoe-seller, Nairobi Business Ventures (NBV), following the conclusion of a Sh83 million buyout deal by Dubai-based Delta International FZE.
NSE said in a Monday statement that the shares will now resume trading following a half month suspension that allowed for the completion of the company’s restructuring.
“Notice is hereby given on the lifting of the suspension in trading of Nairobi Business Ventures (NBV) Limited securities effective November 30, 2020.
“This follows the suspension of trading effected on the security on November 16, 2020 to allow for the completion of the company’s restructuring exercise which includes a share split, allotment and issuance of shares to Delta International FZE and subscription agreement between NBV and Delta.”
The Capital Markets Authority (CMA) approved the resumption on Monday morning.
The share trading was first suspended for one month effective October 14, 2020, when the restructuring started.
Delta, the owner of multiple businesses including Shreeji Chemicals, plans to use the purchased 84 per cent stake in NBV to automatically acquire a listing status and shift the company to cement production.
The firm spent Sh83 million on the deal, technically known as a reverse takeover, to take control of NBV whose shoe retailing business has collapsed.
Existing shareholders of NBV will be squeezed into a 16 per cent stake in the company, which will change its business to cement manufacturing and other industrial undertakings.
As a subsidiary of Delta, NBV’s listing status will give it visibility besides making it easier to access capital.
NBV started out as a shoes distributor in Kenya through the brand name ‘Kwanza shoes’ and ran on the model of importing shoes from China and India. The company later in 2013 changed the brand to ‘K-Shoe.’
The firm posted a net loss of Sh34.72 million in the last financial year, narrowing from a Sh76.53 million posted in the previous financial year.